Sacramento Feds Say Foreclosure Rescue Operator Clipped Homeowners $1K/Month To Purportedly Fight Lenders; Used Ch. 13 Filings To Stall Legal Actions

From the Office of the U.S. Attorney (Sacramento, California):

• United States Attorney Benjamin B. Wagner announced the unsealing of a seven-count indictment charging George M. Eggleston, 63, of Las Vegas, with wire fraud and mail fraud in a foreclosure rescue scheme.

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• According to the indictment, Eggleston targeted property owners who were facing foreclosure and offered to rescue them. Using the business names of Nexxus and Global Legal Associates, he advertised on his own Web site and would also get referrals from others individuals who marketed his services. Eggleston induced property owners to enter into a contract called the "Nexxus Engagement," the terms of which required property owners to sign an "Offer and Agreement" and pay Nexxus a monthly fee in the amount of $1,000 per month for 60 months. The terms of this agreement also required the clients to sign a Power of Attorney giving Nexxus authority to negotiate with lenders and file lawsuits on their behalf.

• The indictment alleges that Eggleston told his clients that by using and managing attorneys, Nexxus and Global Legal Associates could negotiate with lenders and file lawsuits against lenders thereby stopping the foreclosure action. In fact, he did not provide the services, did not manage attorneys, and did not stop foreclosure actions. Instead he used the money from the clients for his personal expenses. According to the indictment, Eggleston filed Chapter 13 bankruptcy petitions in the United States Bankruptcy Court for the Eastern District of California in Fresno.

For the entire press release, see Las Vegas Man Indicted In Fresno In A Foreclosure Rescue Scheme.

For the indictment, see U.S. v. Eggleston.